What Is the Effect of Changes in Eligibility for Benefits

question 17

Multiple Choice

What is the effect of changes in eligibility for benefits and the establishment of workfare programs?

• A)increases the expectation that individuals are responsible for themselves
• B)places a larger burden on taxpayers because of an increase in payments
• C)shifts money to wealthier individuals from the deserving poor
• D)shifts financial responsibility from relatives and close friends to society

---

Definitions:

Contrived Scarcity

An artificial limitation of supply to increase prices, often practiced by monopolies or through regulatory constraints.

Usury Law

Usury laws are regulations governing the amount of interest that can be charged on a loan, intended to protect consumers from excessive and unreasonable interest rates.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Loanable Funds

Describes the market where savers provide funds to borrowers, influencing interest rates through supply and demand.